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Thomas E. Woods Jr., author of "33 Questions About American History You're Not Supposed to Ask," and Reason Magazine Writer Damon Root on th...
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Not true Hussein Tom woods and Damon -- woods is the author of 33 questions about American history.
You're not supposed to -- They in the road writes for the reason magazine both the studied history and were shocked at how much of what they learn in school turned out to be wrong.
Like -- Well the union question for -- And what do we get on unions other than propaganda and I say this isn't -- RAZR they've they raised this all up with all these rules well if if the union mythology were correct history wouldn't it turned out the way it did.
So from roughly the civil war up through 19100 wages are rising consistently.
And yet 3% of the labor force was unionized so obviously the unions can't take credit for this.
American workers got the eight hour day much sooner than that they're much more heavily unionized counterparts in Europe did they -- higher wages.
So but the -- say they got the eight hour day only because of unions.
Well this is not correct and -- for for reasons that we'll get to -- talk about workplace safety.
I think about my own father's case now my father was a teamster.
But he drove a forklift for a living for fifteen years now imagine if he had it stacked pallets with his bare hands instead of with a forklift how much could they possibly paid.
A dollar fifty.
But it's because of the capitalist act of saving and investing in equipment that makes my father more productive.
That makes it even plausible that he could earn a decent way and you saying union rules might have prevented the introduction of the forklift.
Well surely know that either through feather bedding or work rules or through the taxes on corporations that most of these unions seem to -- to favor that would hence.
Would have prevented this healthy outcome from -- And Damon they -- unions say they they made the workplace safer.
-- unions claim credit for a lot of things one of the things they also say is that they've been this -- -- -- force for good a progressive.
Wonderful force in American history.
What effect if you look at the actual history of organized labor it it their success they rise to power came at the expense of disadvantaged groups particularly African Americans as you mentioned beginning.
The 1935 the -- Iraq to national labor relations technical to magna card of labor.
Originally contained a clause forbidding unions from discriminating against black members and that was taken out at the insistence of the American federation -- So this idea that unions have been this wonderful force for racial equality is is simply wrong.
And the AF.
Else president in support of the bill lamented.
Colored -- being sought to.
Demoralize.
Wage rates that the unions push for cynical the Davis bacon act in 1931 which Herbert who -- still stuck where we're still stuck with today.
And the Davis bacon act was in response in Long Island there was -- Veterans Hospital being built and the contractor brought in a group of black construction workers from the south.
And the unions freaked out about this they said this is colored labor it's depressing the white man's working wage they want to be represented debate -- here in New York he any got this bill passed.
I asked him what this does is it sets wages -- -- the prevailing wage it's a local union went so if you're black person unions are discriminatory.
The racist they won't let you win or they they they treat you badly.
What you can do to compete is you -- -- -- little business you could would you could also work for us a lower wage and that's what many African Americans did at the time and -- Davis bacon act goes into effect and now it's illegal for them to compete against organized labor -- federal project.
-- the safer workplace questions well.
That's sounds superficially plausible right now they're wicked capitalists who want you know steel beams falling on your head and thankfully don't -- of -- right -- they couldn't care less.
But that -- the -- of the short of it is.
If we -- introduce American safety standards and to Bangladesh right now would that turned Bangladesh -- a utopia or would it throwing everything you ever say the union just because no be working that'll be sitting in their -- doing nothing.
It shows that there is a limit to.
Workplace safety and that limit is the wealth of the society.
And as the society becomes wealthier as we invested more capital equipment as the workers become more productive and their wages increase.
They can begin to opt for taking some of that increased wage in the form of safer workplaces and as we've seen.
The government tries to take credit for all these advances when the wealth that the market creates is what makes it possible without that we would all be in Bangladesh.
And a good example of that is ocean the head of Moshe under President Clinton was fond of holding up this chart that showed how workplace injuries instantly dropped since OSHA.
Began.
But then somebody charted it before -- and found it was dropping at the same.
-- the slope of the line is the same things get better because of free markets.
Right and they create more wealth and make it possible for us to opt for safer workplace environments and in fact most workplace injuries are caused either by people.
Getting in traffic fatalities on the highways or another another worker punches you in the face it's not what most people think is that you know you're sitting there and -- You know you get your leg gets caught in the grinder and -- reading sausages made out of some -- -- that is not what most of them are caused by I'm relieved to hear that.
Caucus -- sausage let's move on to another -- the new deal FDR's new deal -- the Great Depression I think most people think that.
We had a depression he spent all this money all these programs lifted a -- Well I don't blame them for thinking that it's the propaganda the -- down their throats 24 hours a day present company except of course so.
The answer to this is just to look to his own people and look at Henry Morgenthau who was his Treasury Secretary.
-- in 1939 after he'd just seen the unemployment statistics showing unemployment at just about 20%.
Said well what we've done everything the experts elusive we have tried spending money we -- spending more than.
We have ever spent before and it does not work.
And so it turns out that we still get double digit unemployment during the thirties we have numerous years where net capital investment is negative.
We've got what's called regime uncertainty -- -- lot of businessmen wonder with an administration like this.
I don't want to risk my capital right now so I'm gonna hold back from investing.
We've got this this -- or are you talk and Roosevelt or Obama now.
-- C there you go because that's the real parallel here yet today -- gets the credit for solving the depression.
It's it's astonishing that he would get this credit and the the record as -- with his own people pointing out that it's been a failure what what more would require for us to concede this.
Let's move on to.
We've made a comment about Hoover did not thing and and Roosevelt saved us.
Who -- didn't do nothing Hoover increased spent.
Hoover is the opposite of -- -- fair Hoover.
He doubles government spending there's a public works spending -- -- what we call the Hoover Dam which which was completed under FDR but was started under Hoover.
Who -- -- the reconstruction finance corporation which essentially is giving bailouts to banks -- -- government projects we have this graph of spending under Hoover and before Hoover did would be in pretty flat for the years before Hoover.
Who -- comes to power that's the all he increases spending 50%.
This idea that he's laissez Faire just absurd and you mentioned -- -- for damn that's a good example.
I was a big stimulus product project then of course it was done under him -- the Hoover Dam.
And even today it's still -- separated by advocates of big spending as an example of the wonderful things government should do.
It's a project of national significance we've got those projects on the menu right now.
And then figure out whether or not we are still one country that can think this -- And I think they're winning in the marketplace of ideas that advocates of big spending.
They they've most people think economies won't take care of themselves government has to control.
And yet here we have the greatest examples of of the opposite with the Great Depression.
And the current situation for somebody to think that this was caused by the free market.
When you have Fannie and Freddie have all these regulations you have the Federal Reserve pumping the system with with cheap credit.
Making it seem like the best thing you can do is by five investment properties interest only and have no job.
You know that's not the free market at work that's crony capitalism at it's at its worst.
Thank you Tom -- -- route.
The election season is underway and so now we're gonna get those -- and have -- campaign.
